9084 · 3.1.2
Offer and acceptance flashcards
Revision flashcards for Cambridge 9084 Offer and acceptance (syllabus 3.1.2). Flip, recall, then mark a real past-paper question.
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Offer vs invitation to treat?
Offer — firm intent to be bound on acceptance; ITT — invites others to make offers (shop displays: Fisher v Bell).
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When is an offer revoked?
When communicated to offeree before acceptance — even if offeree has not read it (Dickinson v Dodds).
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Mirror image rule?
Acceptance must match offer exactly — counter-offer destroys original offer (Hyde v Wrench).
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Postal rule?
Acceptance effective when posted, not received — Adams v Lindsell; exceptions: instantaneous communication (Entores).
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Auction without reserve?
This is a unilateral offer to sell to the highest bidder. The auctioneer accepts the highest bid by the fall of the hammer. Case: *Barry v Davies*.
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Carlill — how was offer accepted?
By performance of required acts — no separate communication of acceptance needed in unilateral contracts.
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What is the principle from *Carlill v Carbolic Smoke Ball Co* (1893)?
An advertisement can constitute a unilateral offer to the world at large if it is sufficiently certain and shows an intention to be legally bound (e.g., by depositing money). Acceptance occurs through performance of the conditions specified in the offer.
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What is the legal effect of a counter-offer, as established in *Hyde v Wrench* (1840)?
A counter-offer destroys the original offer, making it incapable of subsequent acceptance. It operates as a rejection of the original offer and puts a new offer on the table.
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What is the 'postal rule' of acceptance from *Adams v Lindsell* (1818)?
Where post is a reasonable means of communication, acceptance is complete and the contract is formed at the moment the letter of acceptance is properly posted, not when it is received by the offeror.
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How can an offer be revoked by a third party, according to *Dickinson v Dodds* (1876)?
Revocation of an offer does not have to be communicated by the offeror themselves. It is effective if the offeree learns of the withdrawal of the offer from a reliable third party before they have accepted.
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What is the rule for acceptance via instantaneous communication from *Entores v Miles Far East Corp* (1955)?
For instantaneous methods of communication like telex (and by extension, email), acceptance is effective when and where it is received by the offeror, not when it is sent. The postal rule does not apply.
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What is a unilateral contract?
A contract where one party (the offeror) makes a promise in return for an act by the other party (the offeree). Acceptance is by performance of the act. Example: *Carlill v Carbolic Smoke Ball Co*.
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What is a bilateral contract?
A contract where both parties exchange promises to perform. Most contracts are bilateral. Example: A promises to sell a car, and B promises to pay for it.
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What is the general rule for tenders?
An invitation to tender is generally an invitation to treat. Each tender submitted is an offer. The party inviting tenders is free to accept or reject any tender.
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What is the exception to the general rule for tenders?
If the invitation to tender expressly states that the highest (or lowest) bid will be accepted, it constitutes a unilateral offer. The first person to submit the highest/lowest bid accepts the offer. Case: *Harvela Investments Ltd v Royal Trust Co of Canada*.
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How can an offer terminate due to a lapse of time?
An offer can terminate if not accepted within a specified time limit, or after a 'reasonable' period of time has passed if no limit is set. What is 'reasonable' depends on the subject matter. Case: *Ramsgate Victoria Hotel v Montefiore*.